U.S. Needs Seaports to Grow Economy

The container-shipping business has seen many advances and improvements over the years that make transportation of cargo by sea more efficient and less costly.

By A. PAUL ANDERSON

America's underperforming economy is a source of frustration and fear for many of us. Although unemployment is gradually improving, if you own a business or are looking for work, you probably agree with many economists that the pace of economic recovery is sluggish and sometimes seems teetering on the edge of another slump.While there are plenty of reasons for this, one factor I seldom hear mentioned — and yet is extremely important — is the state of American seaports. Simply put, we have failed to invest in these essential economic engines. If we don't act soon, America's economy could lose trillions of dollars. This is a drag on our economy we cannot afford.To the casual observer, watching freighters, tankers and cruise ships moving along the channels is a pleasant enough diversion. What is not so obvious is the economic importance of that traffic.Nationally, it's estimated that U.S. seaports are responsible for moving nearly all of the U.S. overseas cargo volume: 99 percent as measured by weight and 65 percent by value.The economic impact provided by seaports extends far from the shore. U.S. ports are responsible for more than 13 million American jobs and $649 billion of the U.S. Gross Domestic Product. Maritime shipping activities contribute more than $212 billion in annual taxes to federal, state and local governments.Although these numbers may sound impressive, they could be much higher.According to the American Society of Civil Engineers, a $16 billion investment gap in improving infrastructure of American ports could result in a $4 trillion loss to U.S. GDP by 2040. That's a significant drag on our economy and one that could put America at a serious competitive disadvantage for a long time.Moving cargo efficiently between ships, railroad trains and trucks requires modern and efficient infrastructure. If the cost of transportation goes up, it is passed along to the consumer in the form of higher prices.One good illustration of the challenge of changing technology is with ships themselves. The container-shipping business has seen many advances and improvements over the years that make transportation of cargo by sea more efficient and less costly.One of these improvements is in the size of the ships themselves. The newest are behemoths that need channels with a 50-plus foot draft. There are only two ports in the eastern United States able to handle ships of this size.We need to invest, expand and adapt, or economic activity literally will sail past our shores.Leading maritime industry experts concur: John Vickerman of Vickerman and Associates says of the 10 busiest ports of the world in 2011, nine are in Asia and six are in the China. John Martin, a leading transportation economist with Martin and Associates, says, "Investment in port infrastructure is critical to compete with Caribbean transshipment hubs for the development of logistics centers."Fortunately, there is hope on the horizon. There is legislation poised to pick up momentum in Congress, the Water Resources Development Act. This bill addresses a host of issues. One of the most important is improvements to the nation's inland and coastal ports.America has always been a seafaring nation, and cargo is the currency of the world. Unfortunately, we as a nation have failed to invest in our ports, essential economic engines to our nation's economy. It's not necessary for a member of Congress to have a seaport in his or her district to understand the powerful effect of maritime commerce on our nation's economy. I urge the passing of a WRDA bill by Congress and signing of the bill by the president this year.It's my hope that members of Congress on both sides of the aisle can link arms on this important legislation.Our nation's leaders need to know how important ports are to strengthening our economy, and we need their commitment to moving WRDA forward.[ A. Paul Anderson is president and CEO of the Tampa Port Authority and past federal maritime commissioner from Tampa. ]

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